Being centralized means trusting someone else to manage his or her money.
In the past, the word “centralized” was given to all institutions that managed finances
Being centralized means that there is an intermediary of trust to manage any asset in a trade. In a bank, for example, a customer gives his money to the bank to keep it. This institution is now in total control of the client’s money.
In many cases, it’s much safer than a person who finds a way to manage themselves. Banks have many titles and a team to monitor the money of their clients. The bank can also offer a variety of services, such as loans, because the bank has a large amount of money and has created a relationship of trust with the client.
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Centralized Cryptocurrency Exchange are not different: a user can store his money on the stock exchange … the hands of the exchange, but the trust of the intermediary makes it easy for a customer to recover a lost password or 2FA because that this customer has given the exchange full access to their account.This can also relieve the pressure of the customer to be There are many stories of investors who lose hundreds of thousands of dollars because they lost the private keys of their wallets, if their money was centralized, they would not have to worry about that. recovering would be as easy as showing a passport or piece of identity to be verified.